In a new Order, the U.S. Federal Communications Commission (FCC), has opted to adjust civil monetary penalties under the authority of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. That Act adjusts the forfeiture penalties for inflation beginning this year, and will allow for the adjustment of civil monetary penalties annually thereafter.
Under the Commission’s Order, all penalties in 2017 will be based on the penalty amount in effect as of August 1, 2016, plus any catch-up adjustments subsequently applied. This amount will then be multiplied by the 2017 annual adjustment factor of 1.01636 to arrive at the adjusted civil penalty applicable for a given violation.
The goal of this adjustment is to maintain the deterrent effect of such penalties, as well as improve their effectiveness.